Organized Records Can Lower Your Tax Bill

The time approaches for that time of year when you scramble to get your receipts together for the accountant. What can you do to reduce the time and expense that goes into tax preparation and accounting services?

Get Ready For Tax Time Month in March signifies the time to prepare your papers for the accountant. Cyndi Seidler, author, columnist and organizing expert, suggests that if we had our records organized before taking to the accountant, we would save money. "Naturally, most of us want to save money as best we can. And the way to do that is to get our record-keeping in order."

Seidler, who runs a professional organizing business in Burbank, CA. offers these tips in organizing records:

* Use a accounting software to organize your records electronically. Printed reports can easily be created to see cash flow, balance sheets, profit-loss summaries, or any number of financial summaries.
* Create a Chart of Accounts. Summarize income and expense information into account categories. This can save an accountant lots of time, as well as help you track every transaction.
* Create files to store such documents as receipts, sales slips, check deposits, and so forth. Once a week enter this information into a ledger or accounting software using a chart of accounts. This saves time doing it at the last minute for taxes.
* Use a business bank account and business credit card to keep business expenses separate from personal. It not only makes sense, it saves an accountant time in sifting through your account for business expenses.
* Do tax planning to save tax dollars. Schedule a meeting with your accountant to plan your taxes for the next year. This is valuable for your future tax savings.





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